Question 1

How will a debt management program affect my credit score?

Accepted Answer

InCharge does not report your participation in a debt management program or plan to the credit bureaus, however your creditors might. Your credit score may decrease when your credit cards are closed and then increase as you make consistent on-time payments over the course of the program. Every person’s credit situation is different. In order to better understand how a debt management program may affect your credit score, learn more about how credit scores are calculated.

Question 2

Can I open new credit cards while on a debt management program?

Accepted Answer

We strongly discourage you from opening new credit cards on a debt management program. Instead, we recommend creating room in your budget by reducing expenses and looking for ways to earn additional income.

Question 3

Can I get a mortgage on a debt management program?

Accepted Answer

Yes, you can get a mortgage while on a debt management program, as long as your credit score is healthy and your debt payments do not consume too high of a percent of your income.

Question 4

How can I choose the best plan for me?

Accepted Answer

Make sure you are working with an NFCC-member nonprofit credit counseling agency like InCharge Debt Solutions. Nonprofit credit counselors provide impartial financial advice tailored to your best interests. A nonprofit debt management program will have low fees and work to secure interest rate reductions on your credit card debt, so you can pay off your debt by making consistent affordable payments.

Question 5

How fast can I pay off my debt on a debt management program?

Accepted Answer

You should be able to pay off your credit card debt in 3-5 years on a debt management program or plan. Your payment will be based on five years of equal installments, paid monthly, but you can pay it down faster. As part of the program, we will share cost-savings strategies that will free up more of your household income to pay off debt.

Question 6

What are the debt management program’s fees?

Accepted Answer

On average, the monthly fee is $33, depending on which state you live in and the size of your debt. If you enroll in a debt management plan, there is also a one-time, set-up fee of $75 – though this fee also varies by state.

Question 7

Will InCharge allow me to use credit cards?

Accepted Answer

Your creditors will require you to close your credit card accounts once you have enrolled in a debt management program.

Question 8

How would I enroll in a debt management program with InCharge?

Accepted Answer

To start the process, call one of our credit counselors at 800-565-8953 or fill out our Get Help Now form. You will receive a free credit counseling session and our counselors will determine if debt management is the best solution for you.

Question 9

How long is a debt management plan?

Accepted Answer

The average length of a DMP is 3-5 years, but is shorter for clients who decide to aggressively deal with their debt. Many clients pay down debt faster by using income tax returns, inheritance money or some other unexpected source of income. There is no penalty for paying the debt off early. You can make additional payments while on the plan and pay off your debt faster.

Question 10

What benefits can InCharge provide with its program?

Accepted Answer

The No. 1 benefit is a lower monthly payment, and the potential of reduced interest rates. There is the convenience of making only one payment for all your debts. You also receive valuable education materials, including financial tips and reminders for payments due. InCharge clients can track their progress online, see their balances and percent of debt they've paid off.

Question 11

Does InCharge keep my information confidential?

Accepted Answer

All information shared with InCharge is confidential. Please see our privacy policy for details.

Question 12

How will enrolling in a DMP affect the interest rate on my credit accounts?

Accepted Answer

Many consumers see a significant reduction on interest rates from participating creditors. Typically, interest rates could be reduced to somewhere around 9% and sometimes as low as 2%.

Question 13

Is a debt management plan the only solution you offer?

Accepted Answer

After reviewing your situation and credit profile, our credit counselors may recommend an alternative solution such as credit card forgiveness, debt settlement or bankruptcy.

Question 14

What is the difference between bankruptcy and a debt management program?

Accepted Answer

Bankruptcy is a last-ditch attempt to settle debts. It is a legal proceeding in which you liquidate all non-exempt assets in order to wipe out debt (Chapter 7) or persuade creditors to approve a repayment plan over a 3-to-5 year time frame to eliminate debt. There are severe consequences for both, including a drop of as much as 200 points in your credit score and the bankruptcy action remaining on your credit report for 7-to-10 years. A debt management program is not a legal proceeding. A notation that you are in a DMP could appear on your credit report, but there should be little impact on your credit score until you complete the program. At that time, you could expect your credit score to improve, sometimes dramatically.

Question 15

Will InCharge stop creditors from calling me?

Accepted Answer

When you enroll in a DMP and start making payments, calls from enrolled creditors should cease.

Question 16

How will creditors find out I joined a debt management program?

Accepted Answer

InCharge credit counselors contact the creditors to make them aware you are participating in the program and request lower interest rates and monthly payments. You also receive responses from creditors once proposals are accepted.

Question 17

What happens if I can’t handle the payments?

Accepted Answer

InCharge counselors work with you to establish a debt management plan that allows you to make affordable payments every month. If your financial situation changes, call InCharge immediately and our credit counselors will review your situation.

Question 18

Will my personal information be secure?

Accepted Answer

Consumer privacy is at the heart of everything we do. InCharge is committed to protecting your personal information by continuing to upgrade and implement market-leading technologies for system integrity and risk management.

Category:Debt Management

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